Inventories, Accounting

Inventories

Question: Titan A.E Company's ending inventory is understated $4,000. The effects of this error on the current year's cost of goods sold and net income, respectively, are:
A
understated, overstated.

B
overstated, understated.

C
overstated, overstated.

D
understated, understated.

Note: Not available
1. Report
Question: Which of these would cause the inventory turnover ratio to increase the most?
A
Increasing the amount of inventory on hand.

B
Keeping the amount of inventory on hand constant but increasing sales.

C
Keeping the amount of inventory on hand constant but decreasing sales.

D
Decreasing the amount of inventory on hand and increasing sales.

Note: Not available
1. Report
Question: Butterfly Company has sales of $150,000 and cost of goods available for sale of $135,000. If the gross profit rate is 30%, the estimated cost of the ending inventory under the gross profit method is:
A
$15,000

B
$30,000

C
$45,000

D
$75,000

Note: Not available
1. Report
Question: In a perpetual inventory system,
A
LIFO cost of goods sold will be the same as in a periodic inventory system.

B
average costs are based entirely on unit cost averages.

C
a new average is computed under the average cost method after each sale.

D
FIFO cost of goods sold will be the same as in a periodic inventory system.

Note: Not available
1. Report

Question: Titan A.E Company's ending inventory is understated $4,000. The effects of this error on the current year's cost of goods sold and net income, respectively, are: